Rethinking Risk Management: Avoid Surprise, Not Risk

Real VisionJune 29, 2020
With recent market moves like the VIX spiking from 15 to 80 in a matter of weeks or oil futures trading at preposterous negative levels, taking even the most experienced professionals by surprise, many individuals and firms lucky enough to have avoided total collapse are rethinking their approach to risk management. In this interview, risk management consultants Brett Friedman of Winhall Risk Analytics and Michael Miller of Northstar Risk reexamine the recent carnage, with a particular focus on how variance swaps got a handful of sophisticated investors with well-established risk management practices in a world of trouble. Together they discuss why systematic vol selling has become the flavor of the day, debate whether these complex products are suitable for pension funds regardless of their sophistication, and put forward the idea that unbiased post-mortem trade analysis is as important for winning trades as it is for losing ones. Filmed on June 23, 2020.
Get access to daily trading ideas, trending topics, interviews and more!
Please subscribe to Insider Tracking Advantage Ultra

Other Real Vision Videos

Real VisionAugust 11, 2020
Charlie McElligot - Macro's Seasonal Shifts and the Volatility Compression Slingshot
Charlie McElligot, managing director for cross-asset strategy at Nomura Global Markets, joins Real Vision’s managing editor, Ed Harrison, to discuss his view of reversal potential for financial market over the next three to six months. McElligot breaks down what he views as crowded trades that might be over-positioned and prone to momentum reversal. He explains how recent volatility compression could act as a slingshot for markets in conjunction with seasonal volume and issuance fluctuations. McElligot and Harrison analyze the phenomena of institutional crowding into short-vol strategies compressing returns, as well as the impact of long-vol hedging strategies, such as S&P 500 puts and VIX calls, have on large dislocations in those markets. McElligot also explains the recent shift in macro regime driving factors from dollar liquidity, Fed QE, and rate expectation to growth and inflation expectations. Filmed on August 7, 2020.
Real VisionAugust 10, 2020
Daily Briefing - August 10, 2020
Real Vision senior editor, Ash Bennington, joins managing editor, Ed Harrison, to discuss the pivotal forces driving markets. They discuss bank balance sheets in Europe and how compression of net interest margins are damaging bank earnings. Ash discusses supply constraints of consumer staples, and Ed analyzes volatility, market breadth, and “bear steepening” through the lens of his recent interviews with Milton Berg and Charlie McElligott. They also look forward to a market of lower growth and higher prices. In the intro, Jack analyze Berkshire Hathaway’s recent Q2 earnings report.
Real VisionAugust 10, 2020
The Return of the Turning Point Master
Milton Berg, Founder and CIO of Milton Berg Advisors, joins managing editor Ed Harrison to analyze the technical patterns and market internals on his radar. From his repository of over 10,000 indicators, Berg selects and discusses the ones he thinks are most compelling, such as 5-day breadth thrust, consecutive volume-up days, and the put/call ratio. Berg then observes that the equity markets are behaving like commodities, in that they are trending upward as volume spikes. Lastly, Berg and Harrison try and reconcile some oddly bullish indicators with the macro backdrop with Berg casting doubt on the long-term sustainability of central bank’s ability to ballast asset prices. Filmed on August 6, 2020. For additional charts of Milton Berg’ Advisors, click here: https://rvtv.io/2PLS1qR

Get an Insider Tracking Advantage Ultra subscription for

  • Insider filing email alerts
  • Access to premium INK Research reports
  • Full access to weekly North America Top filer reports
  • and more including access to INK Ultra Money

Only $9.99 per month (plus tax)!